Cost blowout risk hangs over Sydney’s largest metro rail project

Sydney’s Metro West train line is at risk of costing more than its $25.3 billion budget as mega-rail projects across the city face construction pressures, analysis provided to the state government shows.

Under questioning at a parliamentary hearing, Sydney Metro chief executive Peter Regan confirmed that analysis showed the rail line between the Sydney CBD and Parramatta risks costing more than $25.3 billion.

“I’m aware that there is, of course, a range of outcomes on the project, some of which are above and some of which are below the budget,” he said in response to questions from the Coalition at budget estimates.

However, Regan said Metro West was still tracking within its $25.3 billion budget, as was the new metro line to Western Sydney Airport, which was budgeted to cost $11 billion.

“With all of our projects, we look at a full range of outcomes around the likely out-turn [actual] cost of the project. We are still working to the same budget of $25.3 billion [for Metro West],” he said.

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Forming the fourth stage of Sydney’s metro network, the 24-kilometre line is the largest rail project in the city and due to be completed by 2032, which is two years later than earlier forecasts.

The final configuration of the line will hinge on a vote on April 3 by Australian Turf Club members on controversial plans to sell Rosehill Racecourse to create 25,000 new homes and an extra metro station.

The risk of a cost overrun on Metro West comes as the completion of a metro rail extension between Sydenham and Bankstown has been delayed, while the 23-kilometre line to Western Sydney Airport is set to open in mid-2027, up to six months later than planned.